Medivolve Inc MEDVF

Target Price: $ 1.48 per share (within 12 months)

[deepoil0808]

The TELEHEALTH market is an $ 800 billion gorilla market for MEDV.

I expect that we will carry a $ 600 million market cap valuation within 12 months..

David Priener wants to be able to charge patients $ 300 to $ 500 per year to TELEHEALTH SERVICES.

Sales of $ 60 million per year are easily doable and would translate to between 200,000 to 500,000 patients served per year.

We have approximately 30 cubes in operation.   That would mean that each cube could serve between 6,666 and, 16,666 patients per year. 

If a cube is open 7 days per week, it means anywhere from 18 patients to 45 patients per day per cube.  Cube coulds fully service 160 patients per day.  

The gross margins on this service will be robust in th 40% range so it will be BIG PROFITS.

Is it doable?    The answer is Yes.    I expect that the actual revenue numbers to be generated by MEDV will be many times my conservative forecast.    They plan to hire hundreds of physicians.  

A company with $ 60 million in revenue that is recurring can easily be valued at 10x sales, so a $ 600 million valuation is possible or $ 1.50 per share.   My own target is $ 1.48 per share.

If the revenues ramp up much higher than my forecasts then we can expect a multiple of many times my $ 1.48 per share price target.

The NAKED SHORTS are finished.